Significant changes to the rules and procedures relating to fees charged by the Alberta Securities Commission (ASC) will be effective as of December 1, 2016. The new fee rule, ASC Rule 13-501 Fees, introduces some new concepts related to fees, including participation fees for reporting issuers and fees for exempt international firms.
Perhaps the most significant change is that reporting issuers are subject to a participation fee similar to what is currently employed by the Ontario Securities Commission. Specifically, fees for reporting issuers will be based on the firm’s capitalization and certain other characteristics of the firm, such as whether its securities are listed and the place of incorporation of the firm. Recognized exchanges and recognized quotation and trade reporting systems, will also be subject to a participation fee model. Fees payable by such entities are based on their Canadian trading share during the specified period.
Fees will also be introduced for firms relying on the international dealer exemption or the international adviser exemption under Part 8 of National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. Firms relying on an exemption would be required to pay $1,400 upon the filing of Form 31-103F2 Submission to Jurisdiction and Appointment of Agent for Service, and $1,400 each time the firm files an annual notice of reliance on one of these exemptions.
Reports of exempt distribution in Form 45-106F1 are subject to a late fee of $100 per calendar day and late fees are capped at $1,000 per report. The cap on late fees differs from what issuers may be accustomed to in Ontario as it relates to a single report. In Ontario late fees for the filing of Form 45-106F1 are capped at $5,000 for all late reports for the issuer.
For further information, please see ASC Rule 13-501 Fees.